The Presidents/Chief Executive Officers

All Banks/DFIs/NBFIs

Dear Sirs/Madams,

Buyback of Government Securities

In terms of MTB Rules 1998 (as amended vide S.R.O 1585 (I)/ 2023) and PIB Rules 2000, revised operational instructions and procedure for Buyback of Government Securities are hereby issued, which will supersede earlier instructions issued vide DMMD Circular No. 06 of 2024.

1. SBP will conduct auctions for the “Buyback” of Government Securities, including MTBs and PIBs (Zero Coupon, Fixed and Floater) on behalf of the Government of Pakistan.
2. SBP will announce the details, such as security, target amount, auction schedule, etc., and auction result for the buyback of Government Securities on SBP pages at Refinitiv and Bloomberg, and on SBP website.
3. All Primary Dealers will be eligible to submit competitive bids in the auctions. Non-competitive bids can also be submitted as per existing instructions.
4. Eligible participants will submit the following in the auction bidding on Bloomberg Auction Module (AUPD) within the stipulated time:

• Bid price (per Rs.100 of face value) for the buyback up to four decimal places
• Amount (face value) of the securities

5. On the date of settlement, the bought back securities will be debited from the SGLA of successful bidders while their current accounts will be credited with the accepted amount.
6. Apart from the above, all other auction rules and procedures shall apply to the buyback auctions as defined in various circulars related to the auction of Marketable Government Securities.